Correlation Between RTL Group and VIVENDI UNSPONARD
Can any of the company-specific risk be diversified away by investing in both RTL Group and VIVENDI UNSPONARD at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining RTL Group and VIVENDI UNSPONARD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RTL Group SA and VIVENDI UNSPONARD EO, you can compare the effects of market volatilities on RTL Group and VIVENDI UNSPONARD and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in RTL Group with a short position of VIVENDI UNSPONARD. Check out your portfolio center. Please also check ongoing floating volatility patterns of RTL Group and VIVENDI UNSPONARD.
Diversification Opportunities for RTL Group and VIVENDI UNSPONARD
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between RTL and VIVENDI is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding RTL Group SA and VIVENDI UNSPONARD EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIVENDI UNSPONARD and RTL Group is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on RTL Group SA are associated (or correlated) with VIVENDI UNSPONARD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIVENDI UNSPONARD has no effect on the direction of RTL Group i.e., RTL Group and VIVENDI UNSPONARD go up and down completely randomly.
Pair Corralation between RTL Group and VIVENDI UNSPONARD
Assuming the 90 days trading horizon RTL Group SA is expected to under-perform the VIVENDI UNSPONARD. But the stock apears to be less risky and, when comparing its historical volatility, RTL Group SA is 1.19 times less risky than VIVENDI UNSPONARD. The stock trades about -0.04 of its potential returns per unit of risk. The VIVENDI UNSPONARD EO is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 800.00 in VIVENDI UNSPONARD EO on September 3, 2024 and sell it today you would earn a total of 15.00 from holding VIVENDI UNSPONARD EO or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RTL Group SA vs. VIVENDI UNSPONARD EO
Performance |
| Timeline |
| RTL Group SA |
| VIVENDI UNSPONARD |
RTL Group and VIVENDI UNSPONARD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RTL Group and VIVENDI UNSPONARD
The main advantage of trading using opposite RTL Group and VIVENDI UNSPONARD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RTL Group position performs unexpectedly, VIVENDI UNSPONARD can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in VIVENDI UNSPONARD will offset losses from the drop in VIVENDI UNSPONARD's long position.| RTL Group vs. Computer And Technologies | RTL Group vs. JSC Halyk bank | RTL Group vs. Micron Technology | RTL Group vs. PKSHA TECHNOLOGY INC |
| VIVENDI UNSPONARD vs. News Corporation | VIVENDI UNSPONARD vs. News Corporation | VIVENDI UNSPONARD vs. Superior Plus Corp | VIVENDI UNSPONARD vs. NMI Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
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